UPDATE 1-Mitie Q1 solid, as benefits from outsourcing drive

Fri Jul 10, 2009 7:19am BST
 
Email | Print | | Single Page
[-] Text [+]

* Facilities management and infrastructure doing well

* Conditions still tough in property, asset management

(Adds details)

LONDON, July 10 (Reuters) - British maintenance specialist Mitie (MTO.L) said on Friday trade in its first quarter had started well as private firms and public sector bodies continued to farm out work to cut costs.

The group, which cleans the Tower of London and supplies attendants to the Tate Britain art gallery, said its facilities management and infrastructure units had performed especially well since March 31.

"Economic conditions have created momentum for further efficiencies in both the public and private sectors ... We are benefiting from these market forces," Mitie said in a statement.

Mitie, which is the largest provider of facilities management services to UK schools, also said its property and asset management businesses continued to experience challenging trading conditions in areas including interior fit-out and new build housing-related activities.

The company said it had secured 78 percent of revenue for 2010 by the end of June and that group earnings were developing in line with its expectations.

Analysts expect Mitie to post a pretax profit of 85 million pounds for 2009/10, according to a Reuters Estimates poll of nine analysts.

Shares in Mitie, which have increased in value by 12 percent over the last quarter, closed at 208.75 pence on Thursday, valuing the group at around 670 million pounds. (Reporting by Rhys Jones, editing by Will Waterman)

 

Market Update

  • UKUK
  • USUS
  • Europe
  • Asia
  • UK Most Actives

Most Popular Business News on Reuters UK

  • Articles
  • Videos